Smucker Adds P&G's Folgers into Product Mix
"Folgers is a perfect strategic fit within our portfolio of leading and iconic North American food brands," says Tim Smucker, chairman and Co-CEO of Smucker. "Folgers will become our tenth No. 1 brand in
Assuming Folgers is owned for all of Smucker's fiscal year 2009; net sales are expected to increase to approximately $4.7 billion, and it is estimated that the transaction would be accretive by approximately 9 percent to fiscal year 2009 earnings per share. Smucker also expects to realize synergies in excess of $80 million -- the profit contribution from Folgers and fully realized synergies of more than $80 million are expected to result in estimated earnings before interest, taxes, depreciation, and amortization of $820 million.
"Smucker has proven to be an excellent steward of Jif and Crisco since taking ownership of the brands from P&G in 2002, and I am confident that Folgers will continue to thrive as part of The J. M. Smucker Company," adds A.G. Lafley, chairman of the board and CEO of P&G. "Smucker's core beliefs, values, and principles are very much the same as those of P&G. We cannot think of a better long-term home for P&G's former coffee employees and brands than Smucker."